(a)
(b)
흐트
(c)
(d)
higher commutation of pensions ;
a Provident Fund Scheme for civil servants;
an hypothecated pension fund scheme; and
partial funding of pensions.
Higher Commutation
6.
Existing
pensions
legislation permits
maximum
commutation of 50% of pension benefits under the New Pension
Scheme (NPS).
One
proposal. is simply to allow officers on
NPS who leave at the normal retirement age to commute a
higher percentage of their pension benefits, say 75%.
7.
If 75% commutation is introduced with effect from
1992/93, the additional cashflow by 1997/98 could amount to
about $3.9 billion (an average additional cost of $645
million p.a.). A forecast of the annual pension expenditure
for 50% and 75% cómmutation at 1991/92 prices is at Annex A.
8.
The major limitations of this proposal are : the
number of officers who would benefit in the next few years is
small; the vast majority of staff who still have some years
retirement therefore would not see it as an
before
to serve
effective
pension
safeguard.
It would also lead to an
additional cash outflow
in the short to medium term.
There
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